(ED) Project_Feasibility_Study business

Project appraisal is a systematic evaluation process used to assess the feasibility, viability, and potential impact of a proposed project. It involves analyzing various aspects, including financial projections, resource requirements, and alignment with strategic goals. By gathering data and stakeholder input, project appraisal helps decision-makers identify risks, benefits, and overall worth, ensuring that resources are allocated effectively and that projects align with organizational objectives. This process ultimately supports informed decision-making and enhances the likelihood of project success.

1. Feasibility Report Feasibility Study &

2. Project Preparation vis-à-vis Project Cycle Strategic and Sectoral Considerations Design Phase Feedback loops Process flow Project Identification Project Preparation Implementation Planning Project Start-up Project Execution Project Sustainability Implementation Phase Feasibility Study, EIA, PSD Pre-feasibility Study, PPD PIP

3. What is feasibility study? A feasibility study is an analysis of the viability of an idea through a disciplined and documented process of thinking through the idea from its logical beginning to its logical end. Feasibility study is carried out in order to assess the viability of a new project It is primary and most important thing in development of a project

4. Aspects of Feasibility Analysis Input to the financial and socio-economic analysis Technical Analysis Institutional Analysis Social and Stakeholder Analysis Environmental Analysis Economic Analysis Financial Analysis Project Feasibility

5. Reasons to Do a Study Gives focus to the project. Narrows the business alternatives. Identifies new opportunities. Identifies reasons not to proceed. Provides valuable information for “go/no go” decision. Increases probability of business success by identifying weaknesses early . Provides documentation that the idea was thoroughly investigated.

6. Types of feasibility Operational feasibility Useful for identifying operational problems to be solved, and their urgency The “PIECES” framework P-Performance ,I-Information, E-economy , C-control E-efficiency , I-Information, S-services

7. Types of feasibility Market Feasibility Determine facility needs. Suitability of production technology. Availability and suitable of site. Raw materials. Other inputs

8. Types of feasibility Financial/Economic Feasibility Estimate the total capital requirements. Estimate equity and credit needs. Budget expected costs and returns Organizational/Managerial Feasibility Business Structure Business Founders Environmental feasibility Environmental impact and their assessment

9. Types of feasibility Legal feasibility Is the project legally feasible? Legal requirements .

10. Feasibility report A feasibility report is the results of a feasibility study. This report details whether or not a project should be undertaken and the reasons for that decision . Report Content Introduction/Executive Summary Background Outline of project Methodology/method of analysis Overview of alternatives Conclusion Recommendation

11. Introduction/Executive summary It state objective of the report and of the project It should refer terms of references Also it should state the constraints within which it has been conducted Executive summary: This should concise summary of the major recommendations of the report within 6 pages so that it quickly understood by senior executive

12. B ackground   Some feasibility reports may require some background discussion in order to make the rest of the report meaningful to readers .   Describe your proposed plan in sufficient detail state if it worked elsewhere and how it was implemented Background on the Situation. For many feasibility reports, you'll need to discuss the problem, need, or opportunity that has brought about this report.

13. O utline of system Outline of system involves description of project List type and quality of product(s) or service(s) to be marketed. Outline the general business model ( ie . how the business will make money). Include the technical processes, size, location, and kind of inputs. Specify the time horizon from the time the project is initiated until it is up and running at capacity.

14. Methodology It involves discussion on method of analysis for feasibility study Return on Investment (ROI) analysis For comparing overall profitability ROI = Estimated lifetime benefits - Estimated lifetime costs Estimated lifetime costs or ROI = Net Present value / Estimated lifetime costs

15. STRENGTHS WEAKNESS MAINTAINING THESE STREGTHS What can do for maintain these strengths? OVERCOMING THESE WEAKNESS What should I do to overcome these weakness? OPPORTUNITIES THREATS TAKING ADVANTAGE OF THESE OPPORTUNITIES What can I do to take the advantage of these opportunities? OVERCOMING THREATS What can i do to overcome these threats? SWOT Analysis

16. Overview of alternatives Possible alternatives “Sticking with the current system” should always be studied as one alternative Different business processes for solving the problems Different levels/types of computerization for the solutions Advantages and disadvantages of the alternatives The major possible alternatives should be discussed and compared using clearly defined criteria.

17. Estimate Equity and Credit Needs Identify alternative equity sources and capital availability Producers, Local Investors, Angel Investors, Venture Capitalists Identify and assess alternative credit sources. Banks, Government (direct loans or loan guarantees), Grants, Local and State Economic Development Incentives . Assess expected financing needs and alternative sources. Interest Rates, Terms, Conditions, Etc .

18. Cost and benefits evaluation It demonstrate how this proposal is feasible It involves discussion technological feasibility, economic practicality, social desirability, and ecological soundness Examples of benefits cost reductions error reductions increased throughput increased flexibility of operation improved operation

19. C onclusion  The conclusions section of a feasibility is the restatement of the conclusions you have already reached in the comparison sections. In this section, you restate the individual conclusions, for example, which model had the best price, which had the best battery function, and so on . It must untangle all the conflicting conclusions and somehow reach the final conclusion, which is the one that states which is the best choice

20. Recommendation The final section of feasibility reports states the recommendation. The recommendation section should echo the most important conclusions leading to the recommendation and then state the recommendation emphatically . the basis for that judgment has to be stated somewhere in the requirements section.

21. Example of feasibility report on Waste water system

22. Feasibility Report Executive Summary Includes principal / salient features of technical, financial and administrative aspects of the project Introduction project genesis – how idea of project originated? - whether fits in development plan? organization of study scope and status of report

23. Project area and need for the project(background) Project area Geographic, topographic, climatic, religious, cultural Descriptions Population pattern Estimation and analyze growth rate Estimate probable density of population Economic and Social conditions Present living standards of various groups Identification of locations according to income levels Housing conditions Data on education, literacy, unemployment etc.

24. Available water resources adequacy of surface and ground water w.r.t quantity and quality development of water resources pollution problems Existing water supply system details (source, capacity, area served, hours of supply, number of connections, rate etc.) of existing system Existing drainage and solid waste systems Need for a project improvement, expansion new deficiencies of existing system

25. Proposed project (water supply scheme outline) Details of the project rehabilitation of the existing facility construction of new facility alternative designs selection of sources alternative layouts of rising mains alternative sites of WTP & ESRs training schemes for O & M consultancy services needed Components of project Thoroughly described with necessary topo - maps Location maps Technical information Engg . design & drawings

26. Implementation schedule (CPM/PERT) Cost Estimates capital investment (for all components) recurring cost (annual) Impact on the environment Institutional responsibilities (Identification of organizations) approval funding implementation O & M

27. Financial plan Source of fund Interest on loan Recurring expenses Annual burden

28. Conclusion Summary of findings and results of FR Review of need Recommended alternative scope, coverage and components Capital cost and tentative financing plan Urgency for implementation